Location: Teton County, ID | Metro: Madison County, ID
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $573,984 | 0.22% | F |
| 3BR | $1,660 | $756,042 | 0.22% | F |
| 4BR | $2,110 | $1,141,368 | 0.18% | F |
| 5BR | $2,448 | $1,178,494 | 0.21% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 83422, located in Driggs, ID, within the Teton County metro area, reveals that the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for fiscal year 2026 is $1,340. This FMR figure is significantly lower than the market rent, which stands at $2,843 according to Zillow's Rent Index (ZORI). Given this disparity, voucher tenants will only cashflow in premium units where the rent is closer to the FMR.
To derive the rent-to-price ratio, we use the median home value of $799,474. The annualized rent of $2,843 translates to approximately $34,116 per year, leading to a rent-to-price ratio of roughly 4.27%. This ratio indicates that rental income would cover less than 5% of the property's value annually, suggesting that the primary benefit of investing in this area is not through rental income alone but rather through other factors such as property appreciation or stability.
The median Days on Market (DOM) and the percentage of homes that experienced price cuts are both listed as N/A, which means there isn't enough data to determine typical sales behavior. However, given the high median home value and the relatively low FMR compared to market rent, it's evident that the local real estate market is robust and stable. This stability makes it an attractive option for long-term investment, particularly for those seeking steady returns and minimal risk.
In conclusion, the strongest angle for Section 8 investors in ZIP 83422 is stability, as the high median home values and the significant gap between market rents and FMR suggest a reliable and consistent market environment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.